SUMMARY OF ACTION ITEMS
CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
OCTOBER 11 - 12, 2002
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its October
2002 meeting. A complete set of minutes is available for review upon
request. For more information please contact Pauline Avila at
Lockbox Task Force
1. It was reported for information only that the Lockbox Task Force has
adopted the following mission statement.
"To make sure the REALTOR® members have access to meaningful choices
in Lockbox systems that are:
--secure for the homeowners
--functional and reliable to Agents
--cost effective for the REALTORS®
--access controlled by REALTOR® organizations; and
--systems that have sufficiently advanced technology to accomplish the
The Task Force also adopted the following motions, which have been approved
by the C.A.R. Leadership Team.
That C.A.R. in conjunction with N.A.R. take appropriate actions to ensure
that Supra honors the intent of all existing contracts with Associations
That C.A.R. request N.A.R. to explore through its Technology Center the
adaptation of existing and emerging technologies to develop Lockbox systems
such as through design competitions, etc.
Property Information/MLS Task Force
1. It was reported for information only that the Property Information/MLS
Task Force has completed the first phase in the development of the
"Intelligent Agent" tool as authorized by the Board of Directors at the
June 2002 meetings, and will be developing a high level implementation
strategy and product development plan. It is anticipated that the
Task Force will develop this into a formal motion for approval by the Board
of Directors during the January 2003 meetings.
Real Estate Business Services
1. That the following slate of nominees for a two-year term on the REBS
Board of Directors be approved, and that the C.A.R. President be instructed
to elect these individuals on behalf of C.A.R.
Mike Silvas, Sonoma, Broker/Owner, Morgan Lane
David Parry, San Francisco, Agent, McGuire Real Estate
Willard Elliott, Upland, Broker/Manager, C21 Prestige Properties
Zena Drewisch, Santa Barbara, Association Executive, Santa Barbara AOR
Common Interest Development
1. That C.A.R. sponsor legislation to preclude "any form" of homeowner
association transfer fees, excluding reasonable administrative costs
incurred by a homeowner association in connection with a transfer.
1. That C.A.R., in conjunction with NAR, work with the Department of
Housing and Urban Development to pursue improvements in the REO sales
process. These improvements should include, though not be limited to,
the development of minimum standards for:
--Condition of property at close
--Maintenance of property during marketing
--Delivery of existing reports to buyer and their agent
--Access to property by prospectivebuyers and their agents
--Performance and responsibilities of listing agent/M & M contractor
Housing Affordability 1. That C.A.R. co-sponsor
--Statutorily memorialize that housing shall be a high priority under the
California Coastal Act
--Preclude local governments from reducing the density of a housing
development if the local government does not have an approved element
--Allow an interested party to bring a writ of mandate compelling issuance
of a local governments annual housing production report.
--Add clearer statutory language under the fair housing act about
discriminatory land use practices if the development is for low and
moderate income households.
--Preclude a local government from havinga second unit ordinance that would
have the effect of making it difficult or impractical to build a second
Land Use and Environmental
1. It was reported for information only that C.A.R. will postpone
sponsorship of legislation on lot line adjustments until adequate examples
are collected to support future sponsorship.
Legal Action Fund
1. That the proposed amendments to the Legal Action Fund Bylaws be approved
2. It was reported for information only that leadership is urged to
consider looking into the issue of finding solutions to the workers'
compensation issue by virtue of a task force, referral to the Legislative
Committee or other appropriate action in light of the rising cost of
worker's compensation insurance, which in some cases is higher than E&O
insurance. The issue should include possibly giving options to
brokers to make carrying worker's compensation insurance optional.
It was further reported for information only that in the case of Travis v.
County of Santa Cruz, the Trustees authorized a letter urging the
California Supreme Court to accept hearing in this case on the issue of
whether a property owner can sue on a regulation impacting their property
within 90 days of rejection of the permit instead of within 90 days the law
was actually enacted.
In 1981, the County of Santa Cruz enacted a local ordinance allowing
construction of a second unit but putting conditions on it such as the
amount of rent and a restricted occupancy of 2 low-income adults or two
average-income seniors. Over the years the County amended the
ordinance. In 1999, Travis applied for a permit, which was granted
subject to the conditions. He filed an administrative appeal but did
not receive any relief. He then filed suit challenging the ordinance
as being in conflict with the State rent control laws which preempted
City's ability to set initial rent on the newly constructed units.
The trial court rejected the petition as time barred saying the owner
needed to challenge the ordinance within 90 days of the last amendment to
the city ordinance, not in relation to his own permit. The Court of
Appeal affirmed. The property owner is seeking relief from the
California Supreme Court.
1. That the Leadership Team appoint a task force to make recommendations
regarding insurance availability issues affecting real estate
transactions. The task force should include, but not be limited to,
members with expertise inproperty management, finance, liability, and
transaction documentation, and report in January 2003.
2. That C.A.R. sponsor legislation in 2003 to authorize county recorders to
begin the use of electronic recording of real estate documents.
3. That C.A.R. sponsor an omnibus bill to make technical clean-up of
selected real estate disclosure statutes. The changes will include
formatting of the Natural Hazards Disclosure form, uniformity of airport
noise disclosures, definition of military ordnance locations, and parcel
specific information showing special district (Mello-Roos and 1915 Act)
4. That C.A.R. sponsor legislation to exempt local board arbitrations
between REALTORS® from the new arbitration disclosure rules promulgated
bythe Judicial Council and new changes in the Code of Civil
5. That C.A.R. adopt the following positions on November 2002 ballot
Proposition 46: Housing and Emergency Shelter Trust Fund Act of 2002:
"FOR" (previously adopted position) Proposition 47:
Kindergarten-University Public Education Facilities Bond Act of 2002:
"FOR" (change of previously adopted "Neutral"
position) Proposition 48: Court Consolidation: "NOT REAL ESTATE
Proposition 49: Before and After School Programs; State Grants: "NOT
REAL ESTATE RELATED"
Proposition 50: Water Quality, Supply, and Safe Drinking Water Projects;
Water Projects; Coastal Wetlands Purchase and Protection:
Proposition 51: Transportation: Distribution of Existing Motor Vehicle
Sales and Use Tax: "AGAINST"
Proposition 52: Election Day Voter Registration: Voter Fraud
Penalties: "NOT REAL ESTATE RELATED"
1. It was reported for information only that the Manufactured Housing
Committee has directed staff to explore with N.A.R. staff the possibility
of the secondary-market (Fannie/Freddie) developing loan programs for
mobilehomes and/or manufactured housing; staff will report back to the
committee in January.
Property Management 1. It was reported for
information only that the Property Management Committee recommends that the
Standard Forms Advisory Committee as soon as reasonably practicable, create
the appropriate forms as a result of the recent successful passage of
AB2330 (Migden) and SB1403 (Kuehl).
Real Estate Finance
1. That C.A.R. follow N.A.R.'s policy direction and submit a comment letter
in support of improved disclosure and in opposition to the Guaranteed
1. That C.A.R. work with the Franchise Tax Board to postpone the adoption
of regulations for the new real estate withholding provision contained in
AB 2065 (Oropeza), until corrective legislation has passed and that C.A.R.
develop a coalition of interested participants to jointly sponsor
1. That C.A.R. adopt the Draft Procuring Cause Guidelines, for
implementation upon final approval by NAR, with authorization for staff to
make non-substantive changes suggested by NAR.
2. It was reported for information only that, because the NAR Professional
Standards Committee isdiscussing Standard of Practice 3-4 at their November
2002 meeting, the C.A.R. Professional Standards Committee will postpone,
until January 2003, a motion that C.A.R. work to have NAR rescind Standard
of Practice 3-4 relating to disclosure of dual and variable rate
3. It was reported for information only that the C.A.R. Professional
Standards Committee recommends that the C.A.R. Legislative Committee move
for C.A.R. to sponsor legislation to carve out the REALTOR® Associations
and their volunteer arbitrators from the California laws requiring
arbitrators to disclose information that is confidential under the rules of
NAR, C.A.R. and the local association.
Standard Forms Advisory
1. That C.A.R. sunset the existing RPA-11 as of December 31, 2002.
(motion from Executive Committee) 2. It was reported for
information only that the Standard Forms Advisory Committee has unanimously
approved the release of the California Residential Purchase Agreement
(RPA-CA). The study groupreceived and carefully considered over 350
written member comments. Many of the comments received were
adopted.The Committee further reports that to date over 15,000 members have
received training on the RPA-CA and several dozen additional
trainingsessions and legal outreaches have been scheduled through the end
of this year. Over 1,500 members attended seven training sessions at
the 2002 EXPO. Response to the training was very positive.
The Committee received verbal reports from 14 regions on the RPA-CA
revision, each indicating a preference that C.A.R. produce one statewide
form and that the RPA-11 be discontinued at a near term future date.
Strong support was given for the process used in creating the RPA-CA.The
Committee believes that the revision process utilized in creating the
RPA-CA allowed for significant member and director input and broad
representation of our diverse membership body. Historically, prior
form versions have been immediately discontinued with the release of a new
form. For these reasons, the Committee strongly supports and highly
recommends that the current form revision process remain
unchanged. The Committee recommends that the RPA-CA be adopted as the
one statewide form produced by C.A.R. and that the RPA-11 be discontinued
as soon as possible. However, the Committee would support a brief
delay in the discontinuance of the RPA-11.
The Committee further recommends that in light of the strong support for
the RPA-CA and the significant number of members trained to date, that the
RPA-CA remain substantively unchanged in the near future, absent
legislative or legal requirement.
The Committee also reports that the following categories of forms will be
looked at for revision next year:
--Property Management (including landlord/tenant)
--Office Management and Operation
1. That C.A.R. approve the following slate of nominees for CREPAC Trustee
and CREPAC Alternate:Nominees for CREPAC Trustee (in Region Order):
(November 2002 - November 2005)
Paula Colombo, Region 3
Diane Hardie, Region 13
Terry Fenske, Region 15
Sharon Bowler, Region 16
Melanie Hildebrand, Region 25
Nominees For CREPAC Alternate (In Region Order)
(November 2002 - November 2003)
Dawn O'Rourke, Region 1
Susanna Schlendorf, Region 5
Judy Jarvis Ellis, Region 9
Suzanne Yost, Region 10
Wendy Furth, Region 18
Stephen Goddard, Region 21
LeFrancis Arnold, Region 22
Nancy Hunt, Region 32
1. That C.A.R. approve the following slate of nominees for IMPAC Trustee
and IMPAC Alternate:Nominees for IMPAC Trustee (in Region Order):
(November 2002-November 2005)
Vicky Lynn Campbell, Region 5
Richard Otterstrom, Region17
Dennis Pantano, Region 25
Shirley Long, Region 32
Nominees for IMPAC Alternate
(November 2002- November 2003)
Aida Dimejian, Region 13
Karen O'Brien, Region 15
Patricia O'Neill, Region17
SteveWhite, Region 18
Greg Haas, Region 19
Jeanne St. Clair, Region 23
Mark Marchand, A.E., Region 30
2. It was reported for information only that the IMPAC Trustees have
approved the following contributions:
--Yes on Proposition 46: Housing and Emergency Shelter Trust Fund
--San Francisco HOPE Homeownership Initiative: Campaign support pursuant to
the request of the San Francisco Association of REALTORS®...$25,000 (In
addition, the San Francisco Association of REALTORS® is authorized to
conduct an Interboard Solicitation)
--Rent Control Education Effort: Proactive program pursuant to the request
of the Pasadena-Foothills Association of REALTORS®...$15,000
--No on SOAR in Simi Valley: Campaign support pursuant to the request of
the Simi Valley-Moorpark Association of REALTORS®...$10,000
--Madera Unified School District Bond Act: Campaign support pursuant to the
request of the Madera Association of REALTORS®...$5,000
--N.A.R. HOPE Awards -- Joint sponsorship with C.A.R. of May 2003 event
pursuant to the request of the C.A.R. Leadership Team...$5,000
--Lead consultant fee for technical expertise on lead-based paint
legislation pursuant to the requestof C.A.R...$1,250
1. That the 2003 voluntary political contribution allocation formula remain
unchanged, and that the amount of the suggested Political Survival
contribution remain $49 for 2003.
Formula Current 2002
15% to CREPAC/Federal
15% to CREIEC
70% to CREPAC/BORPAC
70% to CREPAC/BORPAC
(Split: 60% to CREPAC State/40% to Local BORPAC)
15% to CREIEC
85% to CREPAC/BORPAC 85% to
(Split: 60% to CREPAC State/40% to Local BORPAC)
2. It was reported for information only that the Political Affairs
Committee recommends to the Political Activities Fund Committee that the
Member Education campaign be continued in 2003.
1. To approve the selection of Carolyn D'Agosta, North San Diego County as
the recipient of the 2002 California Distinguished REALTOR® Award, the
highest recognition that C.A.R. can bestow on a member.
C.A.R. Scholarship Foundation
1. It was reported for information only that various scholarships were
awarded by the Trustees, and that funds were being raised for scholarships
in memory of C.A.R. Past President Mack Powell.
California REALTOR® EXPO Advisory
1. It was reported for information only that the California
REALTOR® EXPO 2002 experienced record breaking attendance
figures. The 2003 event will be in San Diego from September 30 to
1. That C.A.R. sunset theexisting RPA-11 as of December 31, 2002.
2. That a Resolution of Appreciation for Marleen Schuster be approved.
1. That the following applicants be granted C.A.R. Honorary-Member-For-Life
Arthur W. Del Rey
Margaret F. Henkey
Joseph Benjamin Ragsdale
Donna T. Bergquist
Lawrence Lewis Cone
Martha Mary Verheyen
Bay East AOR
Citrus Valley AOR
James A. Watts
Contra Costa AOR
John G. Miller
East San Diego County AOR
Monterey County AOR
North Bay AOR
Orange County AOR
Jean L. Lambeth
Betty Jane Mays
Pacific West AOR
Carol Taylor Sharp
Robert William Sharp
San Mateo County AOR
Francis Y. Doran
Santa Cruz AOR
Simi Valley-Moorpark AOR
Sue E. Anderson
Vic L. Hawker
Southland Regional AOR
Claire M. Heebner
Louis Seymore Kurzfeld
Kenneth Lee Curtis
Ventura County Coastal AOR
N.A.R. Director Selection Working Group
1. That, for implementation in 2003, the large local Associations and the
large firms/franchises entitled to N.A.R. Director (s) provide to C.A.R.
the name (s) of their N.A.R. Director selection by June 1st of the calendar
year in order for their Director applicants to be considered for a C.A.R.-
N.A.R. Directorship. The charge of the Nominating Committee is to
select the best complement of applicants, regardless of Association
size. Further, the large local Associations and the Large
Firms/Franchises are encouraged to establish multiple year terms for their
All of the N.A.R. Directors from California, whether they are
representatives of large Local Associations, Large Firms/Franchises or the
State allotment should represent the policies of the California Association
Strategic Planning and Finance
1. That the Association's Financial Statements as of August 31, 2002 be
--The Statement of Income and Expenses by program for the eight months
ending August 31, 2002.
--Revenue of $15,659,600
--Expenses of $10,178,500 (including federal income tax).
--An excess of income over expenses of $5,481,100
Political Activities Fund
--An excess of income over expenses of $504,000.
Issue Action Fund
--An excess of income over expenses of $683,900
The C.A.R. Balance Sheet as of August 31,2002
--Total assets of $23,131,600 (of which $15,051,700 are current
--Total liabilities of $3,267,600 (of which $2,511,100 are current
--C.A.R. Fund Balance of $19,864,000.
2. That the Projected Statement of Income and Expenses by program for the
year ending December 31, 2002 be approved.
--Revenue of $18,475,400
--Expenses of $16,739,400 (including federal income tax)
--An excess of income over expense of $1,736,000
Political Activities Fund
--An excess of income over expenses of $277,100Issue Action Fund
--An excess of income over expenses of $473,900. This amount will be
allocated to IMPAC as approved by the Directors.
3. To approve a 2003-2005 strategic plan and 2003 budget with the following
Total C.A.R. Revenue $18,467,000
Total C.A.R. Cost $18,458,600 (including federal income tax)
Net Surplus $8,400
Political Activities Fund Revenue $1,078,300
Total Issue Action FundRevenue $1,078,300
Total Issue Action Fund Costs $656,100
Issue Action Fund Transfer to IMPAC $422,200
95 budgeted C.A.R. staff positions
Membership dues, including $115 for operating programs, $10 for the
Political Activities Fund and $10 for the Issues Action Fund, are set at a
total of $135 per member (predicated on 2003 year end membership of
A 2003 Capital Budget (funded with Association reserves) totaling $141,300
4. To approve for members in areas not serviced by local associations an
additional $30 in membership dues. This amount would be in excess of the
dues approved for members coming through the local associations.
5. To approve the Housing Affordability Fund Committee's request of
$500,000 in seed money to be funded out of C.A.R. reserves as part of the
2003 budget proposal.
6. To approve costs related to the Sacramento Lease Extension in the total
amount of $36,200 as follows:
--Telephone and computer cabling $3,000
--Cost above the TI $5,700
7. To approve additional costs for the Leadership Conference scheduled for
December 2002 in the amount of $22,000.
8. That $260,000 be approved to provide an additional four percent pension
contribution to the C.A.R. Employee pension plan for 2002, augmenting the
previously approved and budgeted ten percent.
1. That a working group be appointed by the President to study the
feasibility of changing the dates for Legislative Day and the June
Directors' meetings to a time in April or early May. The date chosen
should seek to maximize the effectiveness of Legislative Day while causing
as little disruption as possible to other C.A.R. programs. The group
shall report to the Directors in January 2003.
2.The following special awards were presented at the Board of Directors
2002 Outstanding Committee Chairs
Bill Brown, CREPAC Trustees
Chris Kutzkey, Standard Forms Advisory Committee
Steve White, California REALTOR® EXPO Advisory Committee